MY CURE/PRESCRIPTION FOR AILING ECONOMIES SUCH AS THE INDIAN ECONOMY: ABOLISH MULTIPLE DIRECT TAXES SUCH AS THE INCOME TAX. INSTEAD, LEVY A REASONABLE INDIRECT TAX ON EVERY PRODUCT AND SERVICE CONSUMED BY CONSUMERS

MY CURE/PRESCRIPTION FOR AILING ECONOMIES SUCH AS THE INDIAN ECONOMY: ABOLISH MULTIPLE DIRECT TAXES SUCH AS THE INCOME TAX. INSTEAD, LEVY A REASONABLE INDIRECT TAX ON EVERY PRODUCT AND SERVICE CONSUMED BY CONSUMERS IN A GIVEN ECONOMY. ANY TAKERS?
What is the definition of 'reasonable?' To my mind the definition of 'reasonable' must include following three main parameters: Actual budgetary need of given Economy, financial cushion required to take care of any emergency needs, capacity and willingness of consumers to pay the determined tax-levy on given products and services.
Consumers are likely to agree to willingly pay a certain agreed-upon tax only if they are fully convinced the tax so collected from them by executive political power shall be used properly for full welfare of consumers and sustainable development of given economy without any leakages whatsoever.

Consumers often tend to hide or avoid paying taxes levied by any executive political power when they see blatant misuse of taxes by those in powers. For example, tax payers in India scoff at freebies rolled out by ruling politicians for eliciting/bribing prospective voters since these freebies are funded by their hard-earned money collected via tax-regime from them by governments. Also, when they see taxes being siphoned off by politicians-bureaucrats-business nexus then they lose incentives to pay any taxes or work hard to generate further wealth.

Add to this the gross inefficient and unproductive use of public-money by governments. For example, use of taxes for useless projects or inability and unwillingness of governments to carry out administrative functions with minimum possible expenses.

The consumers always are right to ask the following question: Why should I pay multiple taxes such as income tax, corporate tax, wealth tax and so on?

In my considered view, governments must not tax consumers directly. In other words, I propose abolition of all types of DIRECT TAXES and instead rely upon only the INDIRECT TAXES in terms of LEVIES on all products and services.

Psychologically speaking, people/consumers protest paying multitude of DIRECT taxes simply because they feel personal pinch , as they have to directly pay SOME determined amount as taxes from the money earned by them. So to say, they come face to face with tax-collecting mechanisms.

Whereas, they don't come face to face with tax-collecting mechanisms when paying INDIRECT taxes.

For example, you pay for a unit of toothpaste without ever consciously realising that the toothpaste that you have purchased has finally reached your hands after passing through numerous INDIRECT tax-gates such as central excise duty on final product. Not only this, your brain doesn't give any thoughts at all to the fact that various ingredients used in manufacturing the toothpaste-tube have themselves earlier been subjected to various taxes including central excise duty.
A tax-regime that is aggreable to and willingly agreed-upon by majority of consumers goes a long way in helping promote internal peace in any given political-entity.

- Dr Swaamee Aprtemaanandaa Jee